The Financial Markets Are Flashing an Alarm Right Now, and New Fed Chairman Kevin Warsh Could Make Things Worse
The risk/reward ratio on stocks doesn't look as good as it used to.
The Financial Markets Are Flashing an Alarm Right Now, and New Fed Chairman Kevin Warsh Could Make Things Worse
Overview
The stock market is in the midst of a historic bull run. Even a war in Iran and spiking inflation have failed to significantly slow down the S&P 500 and Nasdaq Composite. Both have shown remarkable resilience and continue to trade within a few percentage points of their all-time highs recorded last month.
Meanwhile, Kevin Warsh took the helm of the Federal Reserve with a clear agenda, as outlined in his Senate hearing earlier this year. While the central bank left interest rates unchanged at its meeting this week, a push to reduce the Fed's balance sheet could set off significant alarm bells in financial markets. Here's what's going on and how future Federal Reserve decisions could impact the markets.
Official White House Photo by Daniel Torok.
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Originally published at www.fool.com.
